Eni Advances To Build Solar Plants In Tunisia And Pakistan
Zacks Investment Research | Mar 12, 2019 10:57PM ET
Eni SpA (NYSE:E) continues its stride toward reducing carbon emissions. In this regard, the company has started the construction of two new solar photovoltaic projects in Pakistan and Tunisia.
TUNISIA
Situated in the Tataouine governorate, the ADAM photovoltaic project has a peak capacity of 5 megawatt (MW). Eni, the operator of ADAM concession, possesses a stake of 25%. The energy produced will be consumed onsite, reducing gas use and cutting about 6.500 tons per year of CO2 equivalent emissions. The solar plant, which is anticipated to be completed by the end of 2019, constitutes part of the cooperation agreement with the state company, Entreprise Tunisienned’ Activites Petrolieres (ETAP).
ETAP actively contributes to the progress of renewable energy projects in the country. The project targets to create a progressive hybrid electricity production system with battery storage devices, in a bid to facilitate competent integration with the existing turbines.
Eni’s presence in Tunisia dates back to 1961, with operations mainly in the Upstream sector. The main areas of operations include the Southern (NYSE:SO) Desert areas and Mediterranean offshore. In the Gas & LNG Power and Marketing sector, Eni manages the Transmed gas pipeline that links Algeria to Italy through Tunisia, and with Refining & Marketing.
PAKISTAN
The photovoltaic project in Pakistan will be constructed near the Bhit gas field, wherein Eni is the operator with a 40% stake. The plant will have a peak capacity of 10 MW and is projected to produce about 20 gigawatt hours per year. The energy produced will be consumed onsite, reducing gas use and cutting about 140.000 tons per year of CO2 equivalent emissions over the next decade. The project is projected to be completed by October 2019. It intends to incorporate the new photovoltaic project with the existing power generating facility. Once operational, it will facilitate the shutdown of one of the existing gas turbines and consequently result in lower operational costs.
Eni has been present in Pakistan since 2000 and operates in the upstream sector, with operatorship permits in Bhit/Bhadra and Kadanwari, holding respective interests of 40% and 18.42%. Other concessions wherein Eni has holdings are Latif, Sawan, Zamzama and Miano, holding respective stakes of 33.3%, 23.68%, 17.75% and 15.16%. Currently, Eni is operating in the Pakistani offshore and is active in the Midstream sector.
Both the projects will support exploration and production activities, as well as simultaneously provide green energy with an off-grid set up. The projects help Eni to strengthen its position — both technically and economically — by adding extra value to its traditional operations.
Get The News You Want
Zacks Rank & Key Picks
Eni currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector can opt for some better-ranked stocks as given below.
CrossAmerica Partners L.P. (NYSE:CAPL) is involved in the wholesale distribution of motor fuels, comprising gasoline and diesel fuel. The company delivered average positive earnings surprise of 655% in the last four quarters. It currently sports a Zacks Rank #1 (Strong Buy). You can see Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.